RBI MPC Meet 2025 LIVE: RBI Reduces Repo Rate By 25 bps To 6 Per Cent, Announces Sanjay Malhotra

The RBI has announced the schedule for its six Monetary Policy Committee (MPC) meetings in FY26. With the first meeting concluded today, the remaining ones are scheduled for June 4 to 6, August 5 to 7, September 29 to October 1, and December 3 to 5 in 2025, followed by the final meeting from February 4 to 6, 2026.

Reserve Bank of India (RBI) Governor Sanay Malhotra said in a statement, “Loans against the collateral of gold jewellery and ornaments, commonly known as gold loans, are extended by regulated entities for both consumption and income-generation purposes. In order to harmonise guidelines across various types of regulated entities, to the extent possible, keeping in view their differential risk-bearing capabilities, we shall issue comprehensive regulations on prudential norms and conduct related aspects for such loans.” Read More

Yogita Dand, Certified Financial Planner & Registered Mutual Fund Distributor, at Svarasa says, The RBI’s rate cut comes at the right time. With global trade tensions brewing and inflation easing, this move gives the economy a much-needed breather. Cheaper loans mean more spending and investment, which can really help drive growth in the months ahead. By shifting to an accommodative stance, the RBI is also making it clear—it’s ready to step in and support the economy if things get tougher. It’s a smart, balanced move in an uncertain global environment.

Saurabh Bansal, Founder, Finatwork Investment Advisor, a SEBI RIA (Registered Investment Advisor) says, "The RBI’s rate cut will help offset uncertainties from the global trade war, as banks pass on lower borrowing costs. This move is likely to stimulate economic activity by encouraging business expansion, infrastructure growth, and consumer spending."

Yashoraj Tyagi, CEO, CASHe: RBI’s recent framework on co-lending is the need of the hour. With the growing credit demand and now the reduced repo rate, to address the demand, the lending industry will have to come forward collectively (banks, NBFCs, fintech enablers) and pave way for more diverse partnerships between traditional lenders and agile, technology-driven platforms.

He added: This will enable better capital deployment, more efficient risk sharing, and ultimately, greater credit inclusion, especially for India’s aspirational new-to-credit segments. The co-lending model has already shown promise in combining the digital reach and innovation of fintechs with the financial muscle of larger institutions. A wider regulatory framework will now provide the clarity and confidence needed to scale such partnerships further.

Amit Bhagat, Co-Founder, CEO and MD, ASK Property Fund says, Housing demand has been robust in the last 4-5 years, driven by stable macros, strong consumer sentiment, income and wealth growth. However, an increase in capital values has started impacting sales across segments.

He added, a further rate cut of 25 bps with an accommodative stance announced today, post a 25-bps rate cut in February 2025, is likely to further improve affordability. The falling interest rate cycle is likely to sustain consumer sentiment to some extent which has started seeing signs of weakening amid the current global turmoil and uncertainty.

AM Karthik, SVP & Co- Group Head, ICRA Ltd says, While we await the details, guidelines to harmonise gold loan practices across lenders augurs well for the segment, given the sharp growth in loan book driven by the gold prices and favourable demand dynamics, as unsecured and personal credit slowed since H2FY2024. With the elevated gold prices at present and the currently favourable risk profiles of the NBFCs in this space, considering the liquid nature of the security, the near-term impact on account of regulatory tightening should be manageable. However, competitive pressures for NBFCs could increase going forward, which remains monitorable.

Ashish Bhutani, CEO, Bhutani Infra said that the real estate industry is pleased and appreciative of the Reserve Bank of India's recent decision to lower the repo rate by 25 basis points to 6 per cent. Lower interest rates directly result in lower borrowing costs for prospective homeowners, increasing the affordability and accessibility of homeownership. Demand for a variety of housing segments is anticipated to increase as a result of this reduction. For example, large savings on home loan EMIs could result from a cumulative 75 basis point fall in repo rates which improves loan eligibility and enticing potential buyers to make real estate investments.

Non-Resident Indians (NRIs) and the larger investor community may also change their investment portfolios as a result of the United States' 26 per cent tax on Indian goods. NRIs may be prompted by such tariffs to reevaluate their investment portfolios and possibly look into opportunities in India. NRI investments have already significantly increased in the luxury and commercial segments of the Indian real estate market. Although it is yet too early to tell how U.S. tariffs would directly affect NRI investment in Indian real estate, trade policies of this kind may encourage more NRIs to put money into the Indian real estate market in search of steady and possibly profitable returns.

Anuj Puri, Chairman - ANAROCK Group: RBI’s decision to reduce the repo rates by 25 bps (to 6 per cent) second time this year was expected to the backdrop of moderating inflation. Home loan borrowers may not see much meaningful or immediate interest rate relief. Banks have not transmitted earlier MPC rate cuts to borrowers because of higher funding costs, pressure on net interest margins, higher NPAs, and a cautious lending climate. If banks do pass on the benefits of the last two rates cuts, it will be a boost to homebuyers, particularly for those eyeing affordable housing. Many first-time homebuyers who had been hesitating to take the plunge may make their move if home loan rates reduce.

He added: Housing prices have risen across the top 7 cities in the last one year. As per ANAROCK Research, Q1 2025 saw average housing prices rise by anywhere between 10-34 per cent in the top 7 cities, with NCR and Bengaluru recording the highest 34 per cent and 20 per cent jump, respectively. The average prices in top 7 cities collectively stood at approx. INR 7,550 per sq. ft. in Q1 2024-end, while in Q1 2025-end it increased to approx. INR 8,835 per sq. ft. – a collective increase of 17 per cent annually.

Home loan borrowers whose lenders don't pass on the rate cut could consider negotiating a lower rate or a balance transfer. They should keep their expectations realistic as there may be only partial relief, if any.

Radhika Rao, Executive Director and Senior Economist at DBS Bank: “Undertaking a second successive step to ease policy, the Monetary Policy Committee voted unanimously in favour of a 25bp rate cut. In line with our view, the stance was revised to ‘accommodative’, reflecting policymakers’ comfort with the evolving inflation trajectory and providing room to support growth. This was reinforced by the modest downward revision in growth projections.

She added: Recent liquidity management measures have underscored the preference to maintain a surplus balance, thereby keeping the banking system well-oiled and aiding policy transmission. Overall, policy guidance remained dovish, while keeping an eye on global uncertainties and the consequent need to maintain stability in domestic financial markets. We expect a further 50bp of cuts this year.”

Prateek Tiwari, Managing Director, Prateek Group says, "Following the rate cut by 25 bps in February, RBI announcing another rate cut to 6% will not only boost the economy but also impact the realty sector significantly. Reduced interest rates will ease buyers' financial strains, boosting consumption in the sector. This, in turn, will encourage developers to come up with new launches, sustaining the market’s growth."

Shrinivas Rao, FRICS, CEO, Vestian says, “The repo rate cut of 25 basis points is in line with current market conditions as the headline inflation in February was within the RBI's tolerance limit due to a sharp decline in food prices. On the other hand, the fear of recession is also looming globally amid trade friction between the USA and its trade partners. This reduction in the repo rate is expected to catalyse domestic consumption, boosting GDP growth. Moreover, the change in stance from Neutral to Accommodative points towards easy monetary policy and future rate cuts, leading to a reduction in mortgage rates and a boost to the real estate demand."

Amish Bhutani, Managing Director, Group 108 said , The RBI’s successive repo rate cut by 25 bps is a strong endorsement of India’s growth trajectory. The move will pave the way for increased capital flow into key sectors like real estate. The commercial segment, in particular, stands to gain from improved financial conditions, just as it navigates cost pressures from recent tariff increases. The easier finance due to rate cut would encourage business to expand and invest in Office & retail spaces.

The Reserve Bank of India (RBI) on Tuesday lowered its GDP growth projection for 2025–26 to 6.5 per cent, down from the 9.2 per cent growth recorded in the previous year. The downward revision reflects the central bank’s analysis of persistent global volatility and an uneven domestic recovery. The move came alongside a policy rate cut of 25 basis points, bringing the repo rate down to 6.00 per cent, as the RBI attempts to cushion the economy against external shocks. Read More

Manoj Gaur, CMD, Gaurs Group and Chairman, CREDAI National says, "Given the easing inflation and the global trade concerns mainly due to USA’s reciprocal tariff, the RBI’s decision to reduce the repo rate by 25 bps will have a positive impact on the real estate sector. Another highlight of the MPC meeting was a shift in RBI's stance from neutral to accommodative. As this move commits the central bank to increase the money supply, it will boost India's economy and promote consumption, which in turn will add to the real estate sector's growth trajectory."

RBI Governor Sanjay Malhotra said the monetary policy committee (MPC) had agreed on a reduced repo rate. The repo rate is now 6 per cent from 6.25 per cent earlier. This is the second rate cut since February this year. Read More

Ajit Banerjee President & Chief Investment Officer at Shriram Life Insurance Company said that It was widely expected the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) has unanimously decided to reduce the repo rate by 25 basis points to 6 per cent. This is 2nd consecutive rate cut of 25 bps of calendar year 2025. The rate cut of 25 bps was also accompanied with an unanimous decision by MPC to change its stance from “neutral” to “ accommodative”.

The RBI MPC has taken due cognizance of the global trade uncertainties prevailing and the potential impact it can have to disrupt the economic growth of the country and felt it is all the more necessary to be supportive of growth at this juncture and change of stance from neutral to accommodative was felt appropriate. India’s real gross domestic product is expected to grow by 6.5 per cent year-on-year, revised downward from the earlier projection of 6.7 per cent for the ongoing financial year 2025–26 . This downward revision of GDP estimate for FY 25-26 by 20 bps is in lieu of the uncertainties prevailing in the global trade and policy perspectives.

From the Governors Post MPC meeting statement, it could be also inferred that RBI would ensure adequate liquidity in the system going forward to ensure effective transmission of the rate cuts to the borrowers. Overall, we feel the tone of the Governor’s policy to be dovish and growth supportive.

Aman Gupta, Director of RPS Group says that the RBI's reduction of the repo rate to 6 per cent highlights the urgency for FD investors to reevaluate their non-actively managed strategies. While FDs offer capital protection, passive strategies heighten the need for a more balanced and multi-pronged approach, especially with returns dwindling. Start with banks and NBFCs that offer the best rates—small finance banks tend to pay 0.5–1 per cent higher than the more orthodox banks. Further, assess tax efficiency: Post FD returns after the tax slab (ordinary income taxation) are not inflation-indexed; tax saving FDs or Senior Citizen Savings Scheme (SCSS) outperform inflation post taxation and therefore are better alternatives.

Moreover, a portion of the savings can be channeled towards hybrid instruments such as arbitrage or conservative hybrid funds which offer better stability than equities but tend to be volatile relative to bonds. Do not default to high risk assets immediately; rather sustain an ERFD (emergency cash fund) of 6–12 months of expenses while alternatives are explored. Lastly, do not stop paying attention: Follow policy trends and bank announcements to strategically time renewals. In declining rate environments, rapid response along with spreading risk across multiple targets are crucial in sustaining purchasing power without sacrificing safety.

Shiv Garg, Director, Forteasia Realty Pvt. Ltd. says that the RBI aims to stimulate economic growth by cutting the repo rate to 6.00 per cent because of the ongoing global uncertainty, which is why they cut it by 25 basis points. This is particularly good news for the real estate industry since it will lower the interest rates on home loans and consequently, make homebuying more affordable. In conjunction with the Government focus on infrastructure spending as well as the revived growth in the services and manufacturing industries, we expect to see an increase in housing demand, both in urban and rural regions. That said, we still need to be cautious of outside developments like international trade wars, which could shift the dynamics on the market. In any case, the renewed confidence the market received from this rate reduction will boost investments into the housing sector.

RBI Governor Sanjay Malhotra, in his speech, said that the NPCI will review the transaction limits for P2M UPI payments and have the freedom to revise them if needed. He announced that NPCI, in consultation with banks and other stakeholders, will decide the transaction limits in UPI for P2M transactions. Read More

Murthy Nagarajan, Head-Fixed Income, Tata Asset Management says, "RBI cut repo rate by 25 basis points as widely expected. RBI changed its stance to accommodative from neutral, which was not on expected lines given the global background. RBI seems to be comfortable with currency depreciation in the coming months. RBI has reduced its GDP growth forecast to 6.5 from 6.7 percent and CPI inflation has been revised to 4 from 4.2 percent. They highlighted future expectation of CPI over a 3 and 6 month time frame is lower."

He added, "The governor highlighted lower commodity prices specially oil prices due to tariff war and on the growth downside due to lower investments by companies. RBI made it clear they will provide liquidity in the banking system to support growth Rate cuts in India is expected to be deeper to support growth as CPI inflation is below target of 4 percent for most of the year as per RBI projections. The terminal rate on repo can go towards 5.25 levels from 6 percent at present. The ten-year yields can move towards 6 to 6.25 percent in the coming years as globally growth slows down."

Nish Bhatt, Founder & CEO, Millwood Kane International says that the RBI has proven yet again that it is an ahead-of-the-curve central bank. The RBI has not only cut rates to support growth amid global turmoil, but also swiftly changed its stance from 'Neutral' to 'Accommodative'. The policy change indicates the RBI is in a good position to cut rates if needed going forward. The RBI indicating that the inflation is benign, and the economic growth will be non-inflationary going forward, was one of the highlights of the policy.

He added that the RBI has done its part and delivered the much-needed relief to the industry on time. The government should make efforts to engage with the US government to find a solution to the trade tariff issue. The Indian economy remains strong, with key risks of a global slowdown due to trade tariffs, geopolitical tensions, and protectionism.

Nitin Bavisi, CFO, Ajmera Realty & Infra India Ltd says, “The RBI has provided relief on the rate front for the second consecutive time. The rate cut is complemented well by the change in policy stance from neutral to accommodative. The change in stance indicates the readiness of the central bank to act as per the prevailing situation. Other than the rate cut and policy stance change, the commentary on inflation indicating further softening of inflation due to better crop production and above normal monsoon expectations.

He added, "The RBI has now cut rates by 50 bps in the current calendar year, a move which is expected to further boost demand for real estate. Lower interest rates are anticipated to propagate better home loan affordability, eventually accelerating housing demand in varied ticket segments. The other measures like RBI allowing securitisation of stressed assets and co-lending between regulated entities and beyond priority sector, along with ample system liquidity will help boost the credit growth in the system. Barring the tariff war, geopolitical tensions, most economic indicators are positive, including inflation, GDP growth and a normal monsoon year.” ”

Shishir Baijal, Chairman and Managing Director, Knight Frank India says " We welcome the RBI’s 25 basis point repo rate cut as a timely move to support growth amid global and domestic headwinds. With inflation within target and GDP showing softness, the cut aims to boost investment and consumption without fueling price pressures. We hope that the benefits of this rate cut will be passed to the consumers on an immediate basis, which will be crucial to boost consumption."

He added that the downward revision in growth reflects caution over global trade tensions, though optimism remains for domestic recovery. A drop in crude prices and a stronger rupee have eased inflation, leading to a revised target of 4 per cent. With a cumulative 50 basis point cut in 2025, it is now vital for commercial banks to transmit the benefit to consumers. Lower borrowing costs can aid housing affordability, developer funding, and infrastructure growth.”

According to Vimal Nadar, Head of Research at Colliers India, the policy shift is especially critical in a global environment shaken by reciprocal tariffs and trade tensions. “Benchmark lending rate cuts will boost homebuyer sentiment, particularly in affordable and mid-income segments,” he said. Read More

Binod Kumar, MD & CEO, Indian Bank says that the RBI's 25 basis points reduction in the repo rate to 6 per cent is a timely intervention. Change in stance to accommodative is sentimentally positive, allowing room for better liquidity and growth. Together, they will support both MSME and retail demand. The MSME sector which contributes nearly 30 per cent to India's GDP and accounts for over 40 per cent of exports, will benefit from this move as it will ease credit costs and improve cash flows, which are critical for recovery and growth in the evolving market dynamics. We foresee improved credit appetite at Indian Bank as MSMEs form a vital part of our lending portfolio. Increasing scope of colending will further strengthen lending to these sectors.

Samir Jasuja, Founder & CEO, PropEquity says that average housing prices have risen by approximately 50 per cent post-Covid. At this juncture, the two consecutive cuts in repo rate, in February and April 2025, will provide a cushion to home loan borrowers as EMIs will come down. As home loan rates drop, fence-sitters will be encouraged to make housing purchases. Developers will benefit from reduction in borrowing cost thereby enabling them to expand and launch new projects. The change in stance to accommodative signals further rate cut, a welcome move for the housing sector.

Shares of banking sector stocks declined in early trade on April 9. The banking sector stocks tumbled following the Reserve Bank of India’s second rate cut announcement in 2025. Notably, the Nifty Bank index also shed 366 points in early trade. Read More

Sachin Bajaj, Executive Vice President & Chief Investment Officer, Axis Max Life Insurance says that the policy announcements come against the backdrop of increased volatility across asset classes, fear of a sharp global slowdown due to tariff shock. We believe the policy announcements were balanced and prudent, especially given the current uncertainties. The change in stance highlights the MPC’s resolve to support growth, as inflation risks have come down while risks to growth have increased. On the liquidity front, we expect the RBI to remain proactive and ensure sufficient liquidity conditions in the banking system.

He added, "we believe that the global growth outlook is expected to be highly uncertain and may have potential negative implications for our growth. Inflation is expected to be within MPC’s target of 4 per cent due to lower crude, food. We expect the RBI to continue to provide required support to growth through various measures.”

Kunal Varma, CEO and Co Founder of Freo says, "The RBI’s move to cut the repo rate by 25 bps and shift to an accommodative stance strongly signals that growth is back in focus. From my perspective, this is a welcome step, especially at a time when consumers and businesses are navigating tighter budgets and some uncertainty globally."

He added, "In the lending space, even a small rate cut can have a meaningful impact. Lower rates mean lower EMIs, and that gives people confidence to borrow and spend—whether it’s a home loan, personal loan, or credit line. For fintechs like Freo, this creates the right environment to support borrowers more actively, especially the younger, credit-conscious audience we serve. The stance change also matters. It tells us the RBI is ready to be flexible and proactive, which is key for maintaining financial momentum. The real test now is how quickly banks transmit this cut, because only then will the real benefits be felt on the ground."

Ankur Jalan, CEO, Golden Growth Fund, a Cat-II Alternative Investment Fund (AIF) says, "The two consecutive reductions (50bps) in repo rate are a welcome move by RBI to spur consumption demand and economic growth in view of the global uncertainties and decline in inflation. However, with expectations of another 50bps cut in repo rate in FY26, the consequent decline in fixed deposit rate will disincentivise HNI/UHNI investors, prompting them to look for potentially high return asset class like AIFs which not just has regulatory oversight but also offers risk diversification and high returns."

LC Mittal, Director, Motia Group says that adjusting the repo rate to 6 per cent is an appropriate step taken by the RBI, helping both homebuyers and developers simultaneously. A decrease in EMIs improves the affordability for potential homeowners, rejuvenating the market sentiment at the same time. This will likely lead to more traction towards ready-to-move-in and under construction properties. Developers will also gain from greater credit accessibility and heightened buyer enthusiasm. Furthermore, the central bank cutting rates is a strong indicator for an accommodating policy shift, which is essential for enduring revival across the sectors.

He added that we estimate this will reinvigorate activity in the mid-income and affordable housing segments, the backbone of growth in Indian real estate, as we move into FY 2025-26. The supportive stance of the RBI reinforces the rationale for housing with a controlled inflation outlook, this trend may continue to build housing sector strength and growth.

Adhil Shetty, CEO, BankBazaar.com says that the today’s rate cut is on expected lines. Home loan rates are about to go sub-eight again with today’s 25 bps rate cut. The lowest rates we’re currently seeing are between 8.10 and 8.35. However, the lowest rates are typically reserved for prime borrowers (credit score > 750) and refinance cases.

He added, "Homeowners paying a substantially higher rate (50 bps or higher above prevalent rates) are advised to refinance their loans to avail lower rates. Do note that automatic, immediate and full rate cuts are available only on repo-linked home loans offered by banks. Despite six years of repo-linking, we see that only 50 per cent of floating rate loans with government banks are still linked to the MCLR and 2 per cent to Base Rate. Borrowers with these banks are advised to take stock of their older loan benchmark and consider a refinance to a repo-linked home loan if it helps them save interest outflows."

RBI announced that NPCI will be empowered to revise the Rs 2 lakh transaction limit for UPI person-to-merchant payments after consulting banks and stakeholders.

RBI Governor Sanjay Malhotra announced that loans against gold jewellery by banks and NBFCs will soon be governed by comprehensive, harmonised regulations. He also said stressed assets will be allowed to be securitised through a market-based mechanism.

The RBI MPC has shifted its policy stance from 'neutral' to 'accommodative' in response to the evolving economic conditions.

RBI Governor Sanjay Malhotra noted a positive shift in the outlook for food inflation. However, the Consumer Price Index (CPI) inflation projection for FY26 has been revised to 4 per cent, down from the previous forecast of 4.2 per cent in February. The quarterly inflation projections for FY26 are as follows: Q1 at 3.6 per cent, Q2 at 3.9 per cent, Q3 at 3.8 per cent, and Q4 at 4.4 per cent.

RBI Governor projected the real GDP growth for FY25-26 at 6.5 per cent, with quarter-wise estimates of 6.5 per cent for Q1, 6.7 per cent for Q2, 6.6 per cent for Q3, and 6.3 per cent for Q4.

Sanjay Malhotra said on inflation that the fall in food prices has brought relief on the inflation front, though global and weather-related risks remain. With inflation now below target and outlook improving, the RBI is more confident of aligning headline inflation with the 4 per cent mark over the next 12 months.

The Reserve Bank of India has reduced the Standing Deposit Facility (SDF) rate to 5.75 per cent, while the Marginal Standing Facility (MSF) rate and the Bank Rate have been lowered to 6.25 per cent.

The Reserve Bank of India's Monetary Policy Committee (MPC) has decided to cut the repo rate by 25 basis points, reducing it from 6.25 per cent to 6.00 per cent. The rate cut is effective immediately.

Sanjay Malhotra begins his address, noting that the new fiscal year has started on an anxious note, setting the tone for the RBI’s policy announcement.

The BSE Sensex and Nifty50 opened lower on Wednesday as investors awaited the outcome of the RBI’s monetary policy review. The Sensex dropped over 350 points to 73,874.49, while the Nifty50 fell below the 22,450 mark, trading at 22,423.10.

Bank of Baroda Chief Economist Madan Sabnavis said the upcoming credit policy is being announced at a time when multiple developments are unfolding globally and domestically. He noted that the conditions appear favourable for another 25-bps cut in the repo rate, given the benign inflation outlook and stabilised liquidity. He added that the policy stance is also likely to shift to accommodative, indicating the possibility of further rate cuts later in the year. (PTI) Read More

Ajit Mishra, SVP – Research at Religare Broking, said the market’s movement will depend on the RBI’s policy decision and its forward guidance. The current strength in banking and financial stocks indicates that a 25-bps rate cut is mostly priced in. However, a deeper cut or a change in policy stance would signal a shift towards supporting growth, which could boost buying interest in rate-sensitive sectors like banking, financials, auto, and real estate.

Ankita Pathak, Macro Strategist and Global Equities Fund Advisor at Ionic Asset by Angel One, expects that the RBI is likely to lower rates by 25 bps in its ongoing meeting, with a shift towards an accommodative stance from the current neutral position. Pathak also said that China's response to Trump's tariffs will play an important role for central banks across Asia, including the RBI, as it will impact both currency movements and interest rate decisions. Read More

The Reserve Bank of India is likely to cut interest rates for a second consecutive meeting on April 9, which could make it the shortest easing cycle on record, according to a Reuters poll.

In its previous meeting on February 7, the MPC reduced the policy repo rate by 25 basis points from 6.5 per cent to 6.25 per cent, marking the first rate cut in almost five years. The policy stance remained unchanged at neutral. The Bank Rate was cut to 6.50 per cent, while the Cash Reserve Ratio (CRR) was left unchanged at 4 per cent.

The Reserve Bank of India (RBI) will announce its first monetary policy of FY26 today, April 9. The three-day meeting of the Monetary Policy Committee (MPC), held from April 7 to 9 and led by Governor Sanjay Malhotra. The three-day meeting concludes today, with the RBI set to announce its interest rate decision at 10:00 AM.